Law

There are a lot of things that make lawsuits against homeowners who have fallen behind in their house payments much more difficult to face. One of these is that they are generally illegal and void in most states. In California it is perfectly possible for a homeowner to file a wrongful foreclosure lawsuit, even if other parties have also filed under the same suit. That is why most attorneys will not take them on as they do not understand the technicalities of the case and would therefore be unsuccessful in getting most settlements out of them. But you can file one on your own behalf with the help of an experienced San Francisco lawyer.

As soon as a homeowner falls behind, they usually receive one or more phone calls from a collection agency.

At this point the owners usually feel overwhelmed and confused, wondering who else to call. Many will ask their friends or relatives if they know of anyone who can help. Some will seek out legal advice from the local court house and others will try to find out what the process is at the local courthouse. But all of this is just a waste of time and energy for people who are already deeply worried about their mortgage and credit rating.

These days, there is another source of help for struggling homeowners.

Known as “judgment recovery” judgments, these are a relatively new form of lawsuits that are not based on a legal contract between the defendant and the plaintiff. These lawsuits are brought by investors who simply want their money back after the owner has fallen behind on their payments. If you win the judgment, the investor is legally required to repay your lender, but you can keep your home and gain back all of the equity that you have put into it.

In the past, it was almost impossible for homeowners to mount an effective defense against these lawsuits.

The entire process was largely controlled by the lenders and banks who always had the upper hand in the legal system. Only recently has the tide started to shift and now there are more plaintiffs filing lawsuits against foreclosure victims than ever before. Many of these lawsuits were brought on behalf of recent foreclosure victims who were essentially left with no other option.

It is not uncommon for homeowners to feel helpless during these times.

After all, how can they defend against a group of investors who have plenty of money? Well, there is help available. The government is pumping millions of dollars into the economy each year in order to help homeowners remain in their homes. One particular program, known as the Making Affordable Home Program, or the HAMP, has actually helped to dramatically increase the number of lawsuits filed against foreclosure victims in recent months. Since the majority of HAMP funds are distributed through the Federal Housing Administration, it is being used to help homeowners facing imminent foreclosure.

As long as you have taken steps to stop the foreclosure process, there is little chance that you will be sued when you are facing the possibility of losing your home to foreclosure.

But for those who are already deeply behind, there are ways to at least reduce the impact of the lawsuit. An attorney can represent you in court and attempt to reduce the amount of damage so that you can avoid a lawsuit from the same investors who filed the initial suit against you.